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UNITED STATES SECURITIES AND EXCHANGE
Litigation Release No. 14864 / April 9, 1996
SECURITIES AND EXCHANGE COMMISSION v. THE WINDGATE FUND, LLC; CM
CAPITAL ASSOCIATES, INC.; ROBERT MOSES; AND DONALD MEYERS, 96
Civ. 2502 S.D.N.Y. (MBM)
The Securities and Exchange Commission ("Commission")
announced today the filing of a Complaint in the United States
District Court for the Southern District of New York charging The
Windgate Fund, LLC, CM Capital Management Associates, Inc.,
Robert Moses, of Forest Hills, New York, and Donald Meyers, of
Long Beach, New York, with securities fraud, holding an
unregistered public offering, operating an unregistered
investment company, and engaging in business as an unregistered
broker-dealer.
The Complaint alleges Windgate, CM Capital, Moses and Meyers
violated the antifraud provisions of Section 17(a) of the
Securities Act of 1933 ("Securities Act") and Section 10(b) of
the Securities Exchange Act of 1934 ("Exchange Act") and Rule
10b-5 by offering and selling securities through false and
misleading statements, and violated the registration provisions
of Section 5 of the Securities Act by holding an unregistered
public offering. The Complaint also alleges Windgate violated
Section 7(a) of the Investment Company Act of 1940 ("Investment
Company Act") by operating as an unregistered investment company,
and that CM Capital violated Section 15(a) of the Exchange Act by
operating as an unregistered broker-dealer.
The Complaint alleges the defendants are selling Windgate
shares to public investors through false and misleading
statements, by among other things omitting to disclose that Moses
is subject to a judgment of permanent injunction arising out of a
Commission enforcement action relating to two recent Moses
investment ventures, omitting to disclose Moses is Windgate's de
facto principal officer and has, for example, unfettered control
over Windgate's funds, by falsely describing the prospects for an
investment business that Windgate proposes to pursue, and by
falsely representing the prospects for interactive video
technology.
The Commission seeks an immediate asset freeze, temporary
restraints and preliminary and permanent injunctions against
future violations, an accounting, appointment of a receiver for
the corporate defendants, disgorgement by defendants of the
benefits of their fraud plus prejudgment interest, and civil
penalties.